What You Need to Know About Tesla Model 3 Financing

What You Need to Know About Tesla Model 3 Financing

Tesla is an electric-car company based in California. The CEO and cofounder, Elon Musk, runs it. Tesla offers auto loan through financial institutions for certain Tesla models — in the same manner that dealerships offer financing. Tesla also offers direct lease on select models. Tesla Financing comes with some restrictions.

Limitless loan options

Tesla offers loans for Model S, Model X or Model Y new vehicles. You can also apply for loans to purchase used Tesla cars.

Tesla offers only leases on new Model S and Model X vehicles.

If you’re interested in leasing, know that your lease will end and you’ll be able to purchase a Model S/Model X. However, after your lease ends, you won’t be able to buy a Tesla Model 3.

If Tesla does not finance a model you need, you can get your own financing through a lender.

Leases and loans – Terms limited

Some vehicles have different loan terms and the options for loan terms. Model X is only eligible for 60- or 72-month loans, while Model 3 & Model Y are eligible for 48, 60, 72, and 72-month terms. Model S loans can have terms as long as 36, 48 or 60 months. These are common loan terms. Other lenders may offer a wider range of terms.

Tesla Financing provides lease terms that are only 36 months long for the Model 3; however, it offers terms of 24 to 36 months for either the Model S or Model X. All leases include 10,000-, 12,000-, or 15,000 annually mileage options.

Financing – All from the convenience of your own computer

You can place your order online and apply for your loan, lease or lease of a Tesla. The Tesla website is where you can design and order your Tesla. Tesla recommends applying for financing as soon as you can within 30 to 60% of your delivery date. The loan offers are valid for 30 to sixty days. Leasing offers last for 90 calendar days.

Tesla’s process may be different from those of other automaker’s finance companies. For some people, it may be possible to select the car you want, apply for preapproval online, and then go to the dealership to close your loan. If you don’t have preapproval from a finance company, you might need to go to the dealership to get your car.

A closer glance at Tesla Financing

Here are some other things you should know about Tesla Finance.

  • Tesla Financing allows you to finance the purchase or leasing of a Tesla. Tesla Financing can’t be arranged in Delaware. Iowa. Kentucky. Louisiana. Mississippi. Nebraska. New Hampshire. Oklahoma. Rhode Island.
  • While federal incentives have ended to Tesla cars, incentives at the state and local levels such as rebates or tax credits may still be available depending on whether or not you purchase or lease. Tesla’s website contains a list of available state incentives .

Is the Tesla Financing auto financing right for your needs?

Tesla financing might be the best option if a Tesla is your choice.

If you’re looking for financing for a Roadster or Cybertruck in an area where Tesla Financing doesn’t exist, you will need to find another source of auto loans.

How you can apply for a loan at Tesla Financing

Tesla’s website offers financing options. Tesla recommends you apply for a Tesla Loan or Lease through your online Account when you are between 30 and 60 days before your vehicle delivery date. A member the Tesla Financing staff will contact you within two working days of receipt of your request for a loan/lease.

Before you apply with Tesla Financing for an automobile loan, it is a good idea check your credit history and compare other loan offerings. Understanding your credit is key to setting expectations. Lower credit scores usually translate into higher interest rates. You can also shop around to find the best interest rate and terms that suit you.